You won’t believe how much Portland residents are paying in taxes!

Welcome to a city of contrasts. Portland, Oregon, known for its quirky charm and unique attractions like the old PDX airport carpet, also holds a more sobering title – one of the highest taxed regions in the United States. In a place steeped in creativity, entrepreneurship, and innovation, the burden of taxes can be heavy, impacting individuals, businesses, and even investors.

Let’s delve into the intricate web of taxes that residents of the Portland metro area face, breaking down the layers and highlighting the impact at different income levels. From personal income tax to corporate activity tax, each levy adds to the tax wedge, making Portland less competitive than many other cities in terms of tax burden.

Exploring the Maze of Metro Region Taxes on Income

1. Personal Income Tax

   • Covers wage, investment, pass-through business income
   • Top Rate: 9.9 percent
   • Oregon’s Individual and Pass-Through Business tax ranks sixth highest in the nation, affecting everyone from wage earners to business owners. With marginal rates at top income levels surpassing other states, the tax burden hits hard.

2. Corporate Income Tax

   • Targets C corporation net income
   • Top Rate: 7.6 percent
   • While Oregon’s corporate tax isn’t the highest, combining it with a gross receipts tax makes it a less attractive place for businesses looking to invest.

3. Corporate Activity Tax

   • Impacts gross income above $1 million
   • Rate: 0.57 percent
   • A gross receipts tax, the CAT is an aggressive levy that affects businesses at every level of operation, adding to the overall tax burden faced by the Portland metro region.

4. Oregon Transit Tax

   • Applies to wage income
   • Rate: 0.1 percent
   • An additional payroll tax for state transit projects, uncommon in many other states

5. TriMet Transit Tax

   • Imposed on wage income in selected counties
   • Rate: 0.7737 percent
   • County-level transit taxes add to the financial load for residents in the Metro region.

6. Supportive Housing Services Tax

   • Enforced by Metro regional government
   • Rate: 1 percent
   • A broad-based tax on personal and business income, contributing to the overall tax environment in the region.

7. Preschool for All Personal Income Tax

   • Implemented in Multnomah County
   • Top Rate: 3 percent
   • A local income tax with unique brackets affecting income levels, increasing in the coming years.

8. Business Income Tax

   • Applied to pass-through and corporate income
   • Rate: 2 percent
   • Multnomah County’s tax on business income adds another layer of complexity for local businesses, impacting investors and owners alike.
9. Business License Tax
   • Targets pass-through and corporate income in Portland
   • Rate: 2.6 percent
   • A business license tax that operates in conjunction with the county tax, affecting the bottom line for Portland-based businesses.

Summing Up the Tax Landscape

In conclusion, Portland residents face a myriad of income taxes that make it one of the highest taxed regions in the country. From high personal income rates to complex business levies, the tax burden is substantial across the board. In a city known for its creativity and innovation, high taxes could hinder growth and opportunity.

Navigating the tax system in the Portland metro area requires resilience and understanding. Stay informed and be aware of the tax policies impacting you. Subscribe to get insights from trusted experts delivered straight to your inbox and stay ahead of the tax curve.

Let’s work together to ensure that Portland’s uniqueness shines through not just in its art and culture, but also in creating a tax environment that fosters growth and prosperity for all its residents and businesses.